The idea of Legal Expenses cover may seem a bit scary, especially if you are just starting out as a contractor. After all, we’re sure you don’t intend on getting embroiled in any legal battles!

But, intentions aside, being a contractor does carry risks and it can be unexpectedly easy to find yourself in the middle of an unforeseen dispute — whether because of something you’ve done, or even because of something a client has done.

The Insurance Act 2015 came into effect on 12th August 2016, meaning there will be some changes to taking out and making a claim on your contractor insurance. The aim of the act is to modernise insurance law, making it simpler and easier for business customers to receive claims paid by insurers, whilst ensuring that insurance contracts are still fit for purpose.

George Osborne’s latest Budget as Chancellor passed today as expected, with no real surprises. There was good news for the self-employed, but the spectre of a clampdown on the use of Personal Service Companies (PSCs) by public sector employees still looms like a heavy cloud.

As we’ve mentioned on these pages before, Osborne’s tightening of the vice on the so-called ‘Paxman tax’ comes predominantly as a result of public outcry at perceived tax evasion by celebrities and sports stars. However, such measures will also impact those contractors working in the public sector, meaning that from April 2017 they will now face investigation from their clients and agencies to confirm whether they are ‘true contractors’ or simply a ‘disguised employee’. If the client or agency believes that the contractor in question is a disguised employee, it will be required to deduct tax at source from all payments made.

Kingsbridge have many years of experience in the contracting industry, and we’ve used our expertise to put together a comprehensive, compliant, and competitive insurance solution specifically tailored to meet the needs of contractors, freelancers, and independent professionals. Our policy package offers all the key insurances limited company contractors require in one easy to manage product, including professional indemnity, public liability and employers’ liability, meaning only one policy is needed to cover a contractor’s main exposures.

Last week we took our first look at two of the reasons why you should renew your contractor insurance policy. This week we’re back with another three. You might not be sure that you want to renew, or you might be unaware of the benefits that come with renewing your policy, or you might not be sure if you should continue insuring with Kingsbridge Contractor Insurance. Let us explain.

When the time comes to renew your policy, we understand that you’ll often have questions. Sometimes our customers aren’t sure why they should renew, and aren’t aware of the many benefits of doing so. Over the next few posts we’ll share some of the key reasons for renewing your contractor insurance policy.

This one is simple to explain, and a necessary part of any insurance package. Public liability insurance will cover you and your business for any inconvenience you may cause a customer or client. If damage is caused or goods are lost while work is being carried out then you’ll be covered.

One of the most common questions we get asked at Kingsbridge Contractor Insurance is ‘Why do I need insurance?’ Let us explain.

No matter your industry, if you work as an independent contractor you’re providing your client with your services or your professional advice. If, during the course of your work, you make a mistake or an error that has an effect on your client or their business then they are well within their rights to make a claim against you. Because of this you’ll need to have the relevant insurances. Having the right insurance in place when a costly claim is made can be the difference between keeping you in business and having to shut your business down, something that could have a negative impact if you want to work as a contractor again in the future.

There’s enough to discuss about IR35 to make another blog post entirely (in fact, we’ve donejust that). But, to put it simply, it’s a piece of government legislation aimed at uncovering ‘disguised employment’. What’s that? In essence, ‘disguised employment’ is when a freelancer works on a contract through their limited company, but their working conditions and contract indicate that they are working in the same way as a traditional employee.

If you get caught up in this legislation then your income will be subject to normal income tax and National Insurance contributions, meaning that you’ll lose the advantage of the low salary, high dividends tax arrangement that many contractors benefit from.

If HMRC decide to investigate the validity of your contract against the stipulations of IR35 legislation then they’ll carry out a series of Business Entity Tests. These tests function as one of the ways to prove that your contract is at low, medium, or high risk of being caught out by IR35.

Being covered by professional indemnity insurance (one of the elements of the Kingsbridge policy package) can improve your IR35 stance significantly, and forms a significant part of the Business Entity Test.

Ensuring you are fully covered as a freelance contractor is a vital step towards covering yourself at every level. At Kingsbridge we have designed our core insurance package to cover the risks you’re exposed to as a freelance contractor. This includes Professional Indemnity, Public Liability and Employers’ Liability cover, all at levels that suit the needs of the modern freelancer.

Insurance Times is the media partner of choice, and premier news, information and insight brand, for general insurance in the UK, with an audience of key decision-makers, business placers and principals in brokers, insurers and service suppliers. The awards take place on 1st December at Battersea Evolution in London. We’ll keep you updated on any future nominations or award wins right here on the Kingsbridge blog.

In the meantime, if you’re a contractor or freelancer looking for insurance then why not get a quote online, or get in touch with one of our client services team on 01242 808740 or at info@kingsbridge.co.uk. You can find us on Twitter and Facebook too.